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EU Divided Over €140 Billion Reparations Loan for Ukraine Using Frozen Russian Assets
European Union leaders remain at odds over an ambitious plan to use frozen Russian assets to fund a €140 billion loan for Ukraine, after Belgium blocked the proposal during a summit in Brussels this week. The initiative, designed to finance Ukraine’s military and reconstruction needs for 2026 and 2027, has become a major test of Europe’s political unity and financial resolve amid waning U.S. support for Kyiv.
The proposal would see the EU issue a “reparations loan” backed by roughly €185 billion in immobilised Russian central bank assets held at Euroclear, a Brussels-based securities depository. The funds, frozen since 2022 under Western sanctions following Moscow’s full-scale invasion of Ukraine, currently generate billions in annual windfall profits for Belgium.
However, Belgian Prime Minister Bart De Wever halted progress, citing fears of Russian retaliation and potential legal fallout. Belgium maintains an investment treaty with Moscow that could expose it to international arbitration if the assets are transferred. “If you take the money from my country and it goes wrong, I am not able—and certainly not willing—to pay €140 billion,” De Wever said after the summit. “Those who support this decision must guarantee that the solidarity will be there if things go sour.”
Despite the setback, EU officials agree on the goal: to make Russia, not European taxpayers, pay for the destruction in Ukraine. What remains unresolved is how to do it legally and safely.
Under the plan, Euroclear would transfer the cash to the European Commission, which would then issue the €140 billion loan to Ukraine in tranches tied to spending conditions, such as using the funds to purchase European-made equipment. Ukraine would only begin repayment after Russia ends the war and agrees to pay reparations, allowing Euroclear to eventually reimburse Moscow—a structure Brussels insists does not amount to confiscation.
European Central Bank President Christine Lagarde has warned against any move that could be seen as seizing sovereign assets outright, but has indicated the reparations loan might be feasible with more technical safeguards. EU leaders are also calling for transparency about how much each member state holds in frozen Russian funds and how profits are being used.
Germany and the Netherlands expressed sympathy for Belgium’s concerns but stressed the need for shared risk across the bloc. Hungary has already said it will not participate. French President Emmanuel Macron said technical issues must be resolved but insisted the project remains “on the table.”
With the U.S. scaling back financial support, Europe faces mounting pressure to find long-term solutions. The European Commission is expected to present an updated proposal before the next summit in December, seen as the deadline for a breakthrough.
Ukrainian President Volodymyr Zelenskyy, addressing EU leaders by video, urged swift action. “Ukraine will need this funding at the very beginning of 2026,” he said. “Not everything depends on us—it’s a political decision.”
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US Military Builds Up Forces in Arabian Sea as Iran Warns of Possible War
Tensions between the United States and Iran are rising as two US aircraft carriers operate in the Arabian Sea, military aviation activity increases and Tehran warns it is prepared for renewed hostilities.
Iran targeted at least 24 commercial vessels near the Strait of Hormuz over a two-week period, according to the Washington-based Institute for the Study of War (ISW). The United Kingdom Maritime Trade Operations (UKMTO), a Royal Navy organisation that monitors shipping safety, reported at least seven additional incidents between Monday and Wednesday.
The ISW said the incidents indicated that Iran retained the ability to threaten commercial shipping despite US strikes on its military infrastructure. Citing a US military official, the think tank said Iranian naval forces had adapted by using small boats and spotters to identify vessels after damage to their radar systems.
Iranian military leaders have issued increasingly forceful warnings. Major General Mostafa Izadi, deputy commander of the Islamic Revolutionary Guard Corps (IRGC), said on Thursday that Iran was advancing with strength and was ready to conduct its most powerful operations.
IRGC spokesman Hossein Mohibi said a new war would be irrational for Washington but acknowledged that the possibility of conflict remained. Army commander-in-chief Amir Hatami warned that any attack on Iranian infrastructure would prompt proportional strikes against Israeli and allied targets.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, also warned that US targets, including data centres and artificial intelligence infrastructure, could be within range if fighting resumed.
Washington reinforces its military presence
The US Naval Institute confirmed on Tuesday that the aircraft carriers USS George Washington and USS George H.W. Bush were operating in the Arabian Sea. The Bush returned to the region after a port visit to Phuket, Thailand, while the George Washington had previously replaced the USS Abraham Lincoln.
The simultaneous presence of the carriers increases US naval strength in the region, although carrier deployments can reflect routine rotations and do not necessarily indicate an imminent attack.
US Central Command (CENTCOM) has released images showing F-15E fighter jets receiving aerial refuelling, flight operations from the George Washington and an F-35B taking off from the amphibious assault ship USS Boxer.
CENTCOM said US forces had redirected 130 commercial vessels under the naval blockade of Iran as of October 5. The figure was provided by the US military and has not been independently verified.
US President Donald Trump has not ruled out intensifying air strikes against Iran after the November 3 midterm elections. Asked about reports that his administration was considering the GBU-43/B Massive Ordnance Air Blast bomb, commonly known as the “mother of all bombs”, Trump said it was a very large conventional bomb, not a nuclear weapon.
Specialist flight-tracking account IntelSky reported that US Air Force tanker sorties over the region during the first 14 days of October were running about 50% above September’s daily rate. Transport aircraft activity had also increased, although the figures have not been independently verified and public tracking systems do not capture all military flights.
Reports earlier this month also indicated that around 9,000 additional US troops and sailors could be sent to the region. The USS Theodore Roosevelt had not yet reached the Arabian Sea as of Wednesday, according to the Naval Institute.
Meanwhile, Israel’s Channel 12 reported on Thursday that Western countries had detected unusual military movements inside Iran. The report said the developments did not necessarily require immediate military action. It also reported that Israeli Prime Minister Benjamin Netanyahu had discussed the situation with US Secretary of State Marco Rubio.
The military build-up and increasingly direct warnings from both sides have heightened concerns that the fragile situation could deteriorate into another round of large-scale fighting.
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Spanish Police Clear Ceuta’s Last Migrant Camp Ahead of Royal Visit
Spanish police have cleared Guano beach in Ceuta, where around 400 migrants had been living, ahead of a visit by King Felipe VI and Queen Letizia scheduled for October 13.
The operation began shortly after 8 a.m. on Sunday and involved the National Police, riot control units, immigration officials, the Civil Guard and local police. It was the final remaining migrant camp on the Spanish North African territory to be cleared following earlier operations at Tarajal and Trampolín beaches.
Migrants were gathered and transported by bus to the Temporary Centre for Foreigners (CATE), where authorities will begin registering their details. They are then expected to be accommodated in temporary reception facilities established by the government, including a camp at the port.
Some migrants left Guano beach before officers arrived, taking their belongings and heading towards nearby hills. Similar scenes occurred during earlier clearances, when some people avoided registration and returned to the beaches later, sometimes when food was distributed.
The latest operation follows a major wave of irregular migration from Morocco that brought more than 70,000 people to Ceuta at the end of July, according to the report.
Minors separated from adults
Police identified several minors during Sunday’s operation and gathered them separately from adult migrants. They are expected to be transferred to appropriate facilities for children.
Some young migrants carried signs asking authorities to place them in a centre for minors. Local media reported that several children had previously attempted to register with authorities but had subsequently left reception facilities or avoided the process.
The authorities began transferring migrants from Trampolín beach to temporary accommodation centres in Loma Margarita and El Embolsamiento on August 20. However, some later returned to the beach, repeating a pattern seen after a temporary reception facility at Ceuta’s port ran out of space.
Clean-up begins after eviction
After the camp was cleared, cleaning teams began removing tents, rubbish and other debris left behind by residents. The work is expected to continue throughout Sunday because of the amount of waste accumulated during the settlement’s long existence.
Environmental experts, working with the Ministry of the Environment, will assess the damage caused to the beach.
The camp had been associated with serious incidents, including two deaths, fights, thefts and other disturbances. Over time, an informal community also developed, with street markets and other activities taking place around the settlement.
The clearance comes two days before the royal couple’s visit to Ceuta. Felipe VI and Letizia are scheduled to attend a tribute to people who died at sea during the mass crossing at the Tarajal border.
After spending the night in Ceuta, the king and queen will travel to Melilla. The overnight stay will mark the first time a Spanish monarch has spent the night in Ceuta since King Alfonso XIII visited in 1904 and 1927.
News
Scientists Warn of Possible Major Rockslide at Germany-Austria Border Mountain
Scientists have warned that a major rockslide could occur at Hochvogel, a mountain on the border between Germany and Austria, with between 250,000 and 400,000 cubic metres of rock potentially breaking away from its summit.
The warning follows a smaller collapse in June, when around 2,000 cubic metres of rock fell from the mountain in the Allgäu Alps. Researchers monitoring the site say movement along existing cracks has accelerated, raising concerns that a much larger section could become unstable.
Hochvogel stands 2,592 metres above sea level and forms part of the Allgäu High Alps. A major fissure in the summit has existed since the 19th century and has gradually widened. Records indicate that the crack was once approximately shoulder-width, but it now stretches several metres across.
Scientists from the Technical University of Munich (TUM) have monitored the mountain for 12 years. Since 2018, their work has included permanently installed sensors and measuring equipment, alongside drone surveys using laser scanners.
More than 30 sensors now collect data around the summit, recording movements with millimetre precision. During the spring, instruments detected movement of up to five millimetres per week. By comparison, the Alps generally shift by an average of around 1.8 millimetres a year.
Geology professor Michael Krautblatter, who leads the TUM research team, returned to the summit with colleagues in early October to inspect the terrain and monitoring equipment.
The main fissure was described by TUM in 2024 as being up to six metres wide, around 35 metres long and approximately 60 metres deep. Researchers are also concerned about a newer crack on the south-west ridge, known as “Fissure 6”, where the highest movement rates have been recorded.
The instruments transmit information several times an hour, allowing researchers to assess changes remotely and identify potential warning signs. Krautblatter told the German Alpine Club that similar early-warning systems are operating at only two other locations, Partnach Gorge and Höllental Gorge.
Scientists believe weather conditions could be contributing to the increasing instability. Johannes Leinauer, a member of the TUM team, told Deutschlandfunk that heavy rainfall, thunderstorms and melting snow had a clear influence on movement at Hochvogel.
He added that thunderstorms were becoming more frequent and intense because of climate change, potentially affecting the speed and frequency of rockfalls.
The mountain has long been closed to climbers approaching from the Austrian side, although the route from Germany remains open. Researchers hope continuous monitoring will help authorities identify dangerous conditions and restrict access before a collapse occurs.
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